Avalanche of Underperformance – Indian Sectors 2017

Rajandran RDecember 24, 2016

RRG charts – weekly relative performance shows that more sectors are likely to underperform in the medium term (2-3 months). Probably stock picking is not going to be a easier game for the next two months. Sectors like Consumption and Realty sectors are underperforming largely relative to the benchmark index Nifty 50.

Very few sectors like Nifty IT, Nifty Service, Nifty Infra are expected to outperform in the medium term relative to Nifty.

Nifty 50 Relative to S&P 500

Nifty 50 is more likely to underperform in the first quarter of 2017 as well as both RS-Ratio and RS-Momentum are declining on weekly timeframe which indicates a potential & more significant relative under-performance in the future.